Current Account, Main aggregates - Trend estimates at current prices (a)

International Investment

JUNE KEY POINTS

BALANCE OF PAYMENTS

The current account deficit, seasonally adjusted, fell $7,068m (36%) to $12,774m. The surplus on balance of goods and services of $559m was a turnaround of $7,872m on the $7,313m deficit of the March quarter 2008. The income deficit increased $797m (6%) to $13,284m.

In seasonally adjusted chain volume terms there was an increase of $57m in the deficit on goods and services. This is expected to detract -0.1 percentage point contribution from growth in the June quarter 2008 volume measures of GDP.

INTERNATIONAL INVESTMENT POSITION (IIP)

Australia's net IIP rose $5.0b to a net liability position of $692.1b. Net foreign debt was $600.0b, a decrease of $4.5b. Net foreign equity increased by $9.5b to a liability of $92.2b.

NOTES

FORTHCOMING ISSUES

ISSUE (QUARTER)

Release Date

September 2008

2 December 2008

December 2008

3 March 2009

REVISIONS

Table 36 summarises revisions, in original current price terms, since the last issue of this publication, for the last three years and six quarters.

Incorporation of the latest survey and administrative data has resulted in revisions to the current account back to September quarter 2001. In addition, revisions have resulted from the introduction of the new methods and data sources described below in Changes in this Issue. In original terms, these revisions have decreased the 2006-07 current account deficit by $815m and increased the deficit for March quarter 2008 by $81m.

The financial account and international investment position have been revised back to September quarter 2004, resulting in a decrease of $42,312m in Australia's net IIP liability as at 31 March 2008 to $687,175m.

CHANGES IN THIS ISSUE

Activities of the Future Fund are identifiable for all relevant periods for the first time in this issue. At the request of the relevant Minister, identifiable information about the activities of the Future Fund remained confidential in all releases published up to and including 30 June 2008.

A review of the calculation of accrued income on long term debt securities has been conducted as part of an ongoing program to improve the quality of the current account income data. The resulting revisions affect both credits and debits from September quarter 2004 and have been introduced in this issue. Technical note 1 on page 71 describes the new methodology for calculating accrued income on long-term debt securities.

June quarter 2008 also sees the introduction of a number of adjustments to portfolio equity investment abroad to reconcile with CHESS holdings of Chess Depository Interests (CDIs) and other securities of non-resident companies. This resulted in revisions from September quarter 2004. Technical note 2 on page 74 describes the data source and methodology used.

The methodology and data sources for compiling compensation of employees estimates have been reviewed. Compensation of employees revisions from September quarter 2002 to March quarter 2008 have been incorporated in this issue.